We look at some inventory models for dual channel retailers who fulfill demands
from both channels from the same pool of stock. Since the arrival of the internet,
companies, particularly retailers, have been trying to figure out how best to take
advantage of this new channel. This became acute for retailers when Amazon.com
became the pre-dominant bookseller overcoming rivals like Barnes and Noble and
Borders who had been operating for several decades. Firms in other categories were
worried that a web only retailer like Amazon.com could end up dominating their
sectors as well. To respond to such threats, existing retailers like Tesco and Lands
End began offering their products through a web-site which became their web channel.
To improve efficiency and to take advantage of specific characteristics of this channel,
firms had to modify the operations of their existing channels. In this thesis, we look
at retailers who took advantage of the web channel to better their operations for the
entire firm.